Online shopping as major driving factor for augmented reality in retail market
The augmented reality in retail market is expected to be 1,155.8 million US dollars in 2018 and is projected to reach 7951.2 million US dollars by 2023, at a CAGR of 47.1 percent during the forecast period.
Increasing online shopping encourages retailers to adopt AR, rising smartphone penetration, and growing adoption of connected devices are the major factors driving the growth of the augmented reality in retail market. The lack of compatibility, interoperability, privacy, and security concerns associated with the use of AR restrain the growth of the AR in retail market.
With advancements in computing, AR-enabled devices can be used for consumer, commercial, and enterprise applications. In the retail sector, smart glasses are expected to be used on a large scale for the workforce and sales management purposes.
Go Instore (UK), a service provider of online video commerce, partnered with retail firms to provide online video support using AR technology. The technology provided by the company helps remote shoppers to connect with the in-store experts in real time.
The experts at the store use AR glasses to get the real-time information on the call and address queries or grievances of remote shoppers.
Planning and designing application is used in retail types such as furniture and lighting, automotive interior, and paint. The planning and designing application helps in placing a product virtually at a desired place.
Furniture and lighting is the major retail type in the planning and designing application. AR is increasingly being used by furniture retailers to help customers visualize the select products at their desired place.
This helps customers to buy furniture and relevant stuff according to their home or office spaces.
Growing consumer and commercial markets with increasing investments in countries such as Japan and China would boost the growth of the AR in retail market in APAC. E-commerce is becoming a major area of focus for retailers in APAC, where China is becoming the largest e-commerce market worldwide.
In 2018, North America is expected to hold the largest market, with maximum revenue generated from augmented reality in retail applications. The AR in retail market is estimated to grow considerably in the subsequent years in this region.
The US homes a few major retail industries across the world, with the apparel industry being the largest; it is 50 percent larger than the retail industry in China. The 12 major US retailers hold one-third of the market share across the world; this further drives the AR in retail market in North America.
In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews have been conducted with key experts in the AR industry.